Preview Questions Risk Assessment Analyst | Role Specific Skill

Question 1: Which strategy is most effective in mitigating reputational risk?

Which action should you take?

Choose only one option

Rely on internal audits and compliance checks

Improve customer service and transparency

Increase portfolio risk in order to maximize returns

Increase loan interest rates

Question 2: Which of the following is an example of a non-financial risk mitigation strategy in a bank's operations?

Which action should you take?

Choose only one option

Implementing strong internal controls

Insurance policies

Increasing liquidity reserves

Hedging with foreign exchange contracts

Question 3: Why is it important to include a data limitations section in a risk report?

Which action should you take?

Choose only one option

To meet regulatory standards

To justify risk scores

To disclaim inaccuracies

To acknowledge potential biases

Question 4: What is a key limitation of over-reliance on insurance as a risk mitigation strategy?

Which action should you take?

Choose only one option

It may increase profitability

It ensures compliance with industry regulations

It cannot prevent the occurrence of a risk event

It simplifies risk reporting

Question 5: In the context of Dodd-Frank Act, what is the primary purpose of the Volcker Rule?

Which action should you take?

Choose only one option

To prevent excessive risk-taking in proprietary trading

To regulate interest rate swaps

To ensure accurate risk reporting

To enforce higher capital requirements

Question 6: What type of regression model is most appropriate for predicting binary risk outcomes?

Which action should you take?

Choose only one option

Polynomial regression

Linear regression

Ridge regression

Logistic regression